Decision-making process: steps, techniques and how to solve problems in companies

Decision-making process

decision making process

Summary

Decision-making process is the power to choose, whatever the circumstances, the best path that the company will follow.

However, in order to be assertive in this mission, it is necessary to understand the stages of this process, as well as the types of decisions that exist to solve any problem in your business.

Making decisions, no matter how small and less complex they may be within a company, is not an easy task.

There are many variables to consider – and ignoring some detail can cause a big headache later on.

Also because, when we talk about an organization, we deal with expectations from customers and employees alike. All this needs to be measured.

The work of those in the management of a sector, therefore, is and will always be strategic.

The steps in the decision-making process thus make this mission much easier and ensure that they take place in the necessary terms.

Today’s article talks exactly about what this process is, how to implement it in companies (regardless of their size), the steps and tools that help in this mission.

Let’s check it out? Good reading!

What is the decision making process?

As we said before, the decision-making process is a set of strategies and actions aimed at assertive decision-making within a company.

It is the ability to choose the best path in a given context. It is something that starts with the identification of the problem. Which is not always easy.

After all, it is necessary to have the necessary information and to be really immersed in the day-to-day of an organization to have an accurate diagnosis.

Then, it is necessary to identify the factors that led to this problem and, thus, choose the best way to solve it.

Thus, it is up to people in management positions to analyze the work environment to detect situations in which it is necessary to intervene.

As it is a process, this decision takes place in stages – which we will discuss later – that cannot be ignored.

After all, the intervention to correct something needs to occur not only with empirical knowledge of those who occupy a higher hierarchical position.

The numbers of a sector are also equally relevant to, initially, not doing any injustice.

So here’s a tip: meter everything. When there are numbers, there is precision and full understanding of reality.

It is the initial step, for example, to make a fair performance evaluation of a professional or an entire team.

And, from there, have more security and understand what makes and what doesn’t make sense to put into practice within a company’s routine.

What are the steps in the decision-making process?

As much as there is a lot of experience in the area and mastery of business and people management, it is necessary to have clear decision-making stages – and comply with them!

More than that, understanding how to act in each of them will provide security and contribute to an organizational culture that is always positive internally.

Therefore, we separated the 5 steps that make up this process. Let’s check each one of them?

1 – Problem identification

The initial step is, of course, identifying the problem being faced by the company.

And here, it is worth saying that each one of them needs to be solved individually and have their peculiarities respected.

Thus, a consistent solution can be applied and be effective from the start – which, let’s face it, is the ideal scenario.

So, therefore, understand that the problem can arise from different sources:

  • for not knowing how to apply an action or norm well;
  • by implementing a new tool;
  • by a new challenge proposed;
  • to fix something that is not going well, among others.

So, before proposing actions, be clear about the real cause of this problem. Understand what and who are the people affected by it.

2 – Diagnosis

The next step in the decision-making process requires more detailed work and, of course, equally important: the diagnosis.

Focus on identifying the threats and opportunities, as well as the tails and consequences that relate to the problem.

So, here, the need for numbers comes in again – in addition, of course, to close administrative management , which dialogues with employees.

For example, if we talk about diagnosing problems within a sales department, what numbers within your dashboard show a failure?

You may notice that the conversion rate from one step to another within the sales pipeline is below what is needed.

In this case, a simple analysis can do the trick. But, there are others that need more complete and time-consuming research and analysis.

But obviously they need to be done.

3 – List of alternative solutions

decision making process

Once you’ve identified the problem and made an accurate diagnosis, it’s time to list the options that are available.

For this, consider several factors before listing one option or another. Does it fit within the company’s budget? What will the deployment time be? Will major changes be needed?

There are many variables within the decision-making process – and that is why it is crucial to choose consciously.

Assess with the people involved what may or may not be considered an alternative.

How will each option be reflected in your daily work? Will it actually solve or problem and/or can it create a new one?

4 – Decision making

The final word, of course, must be the manager. But with the alternatives on the table, you have to decide. Consult people to find the best way forward.

Take into account the risks, the return, the moment of the company. Another thing that is also relevant: is this measure focused on the customer , on solving a problem in order to generate more value for him?

This should always be a question to consider. The concept of Customer First , in fact, must always guide decisions within companies.

5 – Evaluation of decisions

To ensure that something will actually be resolved, it is essential – within the decision-making process – to monitor what has been implemented.

So, back to the example we cited.

If you noticed that the conversion rate between the stages of the sales funnel is low and understood that you needed the digital transformation in the sector, you need to monitor how the implementation and use of the chosen sales system is going .

Only then will it be possible to understand if you made the right decision – which will serve as a guide for the next necessary decisions.

Techniques and tools that help the decision-making process

To assist the decision-making process, some techniques and tools also contribute to making this mission more assertive.

Companies that want not only to grow but also to remain competitive and focused on customer success are increasingly looking for techniques that help fix problems.

One of the best known is the Ishikawa Diagram – or fishbone. It is a visual tool that serves to solve – together – all kinds of problems.

The SWOT  (or SWOT) matrix is equally important at this time and can be used by companies.

This tool helps by giving a complete diagnosis of both the company and a specific sector – which helps to identify possible defections.

Finally, another equally important technique: the BCG matrix , which performs a strategic mapping and serves as a powerful analysis tool.

So, following these steps and using the right tools, the decision-making process within your company is no longer a headache.

So, how can we help you?

If you have questions about the content or want to fix sales issues in your company, talk to a consultant today .

Take the opportunity and read two articles that will help you to have even better processes within your business.

The first talks about another important technique in identifying problems in companies, the Theory of Constraints .

The second talks about how the Pareto Principle corrects processes and makes everyday life more assertive in organizations.

Good sales!

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